What does the 2010 Tax Relief mean to you? By Ken Mahoney
After waiting until almost the last minute, Congress averted tax increases that would have affected taxpayers at all income levels and added some 15 million lower-income workers to the tax rolls.1
Had Congress not passed the 2010 Tax Relief Act (H.R. 4853), tax rates for income, capital gains, dividends, and estates would have reverted to higher pre-2001 levels in 2011. Rates for these taxes were reduced in 2001 and 2003 but were subject to a December 31, 2010, expiration date because of the political climate at the time. The new law pushes their expiration dates to December 31, 2012.
Despite the uncertainty created by yet another temporary tax law, there are many encouraging provisions that result in some of the most favorable tax conditions Americans have seen in a generation.
What’s New and What’s Not?
One-year payroll tax cut. Employees may notice slightly more take-home pay in 2011 because their share of the payroll tax, which is used to fund Social Security, has been temporarily reduced to 4.2% of income (on up to $106,800 in taxable wages). For the self-employed, the payroll tax has been reduced to 10.2%. The employer’s share of the payroll tax, equal to 6.2% of an employee’s pay, did not change.
Estate tax revival. Although the federal estate tax is back after being repealed in 2010 (for one year only), the new parameters are more generous than those that had been scheduled for 2011 (a $1 million exemption and a 55% top tax rate).
For individuals who leave behind an estate before December 31, 2012, assets in excess of a $5 million applicable exemption will be subject to a top rate of 35%. Married couples who take the appropriate steps may be able to pass up to $10 million tax-free to their heirs.
The new law also brings back the stepped-up basis rules, which allow heirs to calculate their basis in an asset according to its value on the date of inheritance. Heirs who inherited assets in 2010 can elect to use the modified carryover basis rules that were in place for that year (meaning they must calculate capital gains using the decedent’s basis) or they can apply the new $5 million exemption and 35% top rate and use the stepped-up basis rules.
Gift tax reunified with the estate tax. Gifts in excess of the donor’s $5 million lifetime exemption are subject to a maximum 35% rate.
Itemized deductions for high incomes. The repeal of the so-called Pease limitation, which reduces the use of certain deductions for taxpayers with incomes in excess of certain levels, has been extended through 2012.
No phaseout of the personal exemption. High-income taxpayers will be allowed to claim the full personal exemption through 2012. Prior to 2010, the exemption was phased out for taxpayers with incomes in excess of certain thresholds.
Two more years of AMT relief. Middle-income taxpayers may be able to avoid the alternative minimum tax for at least two more years. The AMT was crafted in 1970 to keep wealthy taxpayers from using exemptions and deductions to avoid income taxes, but it has started to affect less affluent taxpayers because the limits aren’t indexed to inflation. The new exemption amounts for 2010 and 2011 are $47,450 and $48,450, respectively, for single filers ($72,450 and $74,450, respectively, for married taxpayers filing jointly).
Capital gains and dividends. Long-term capital gains and qualifying dividends will continue to be taxed at a 0% rate for individuals in the 10% and 15% income tax brackets and at a maximum 15% rate for other taxpayers. After 2012, long-term capital gains will be taxed at a maximum 20% rate and dividends will be taxed as ordinary income.
Income taxes. The 2010 Tax Relief Act includes a two-year extension of the income tax rates that have been in effect since 2003. These are the 2011 income limits:2
These are just the highlights. Several other provisions have been extended. Before you take any action, consult your tax advisor for information about your situation.
1) The Wall Street Journal, December 17, 2010
2) CCH, 2010 (Income limits are projected. Actual limits may vary.)
The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2011 Emerald Connect, Inc.
Senin, 10 Januari 2011
Senin, 03 Januari 2011
2010, the year in review, and a look at 2011 prospects by Ken Mahoney
2010, the year in review, and a look at 2011 prospects by Ken Mahoney
2010 was truly a year for the history books! The Standard & Poor’s 500 began January at 1115, and then crisscrossed that line 165 times to eventually end the ride with its finest December performance in 19 years. The Dow’s second-straight annual increase was equally dramatic, with almost half of its climb (5.2%) occurring in December.
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. Indexes cannot be invested into. Chart is for illustration purposes only.
More than a few factors influenced the roller coaster ride of last year. Here are a few of the highlights:
January – Stocks start out looking good at 15-month highs.
February – European debt concerns take center stage as investors fear Greece will default and trigger a landslide that continues into Portugal, Italy, Ireland and Spain. Anxiety about these areas tug at the markets all year.
April – In a series of left hooks, the SEC files charges against Goldman-Sachs related to improper sale of securities tied to subprime mortgages, the BP oil spill fiasco begins, and Greece requests a $53 billion bailout.
May - Wall Street experiences the infamous “Flash Crash” that sends the Dow plunging almost 1,000 points in just a matter of minutes.
July – Stocks sink to 2010 lows as June’s jobs report disappoints. President Obama signs the Frank-Dodd Wall Street Reform and Consumer Protection Act into law, enacting the most far-reaching financial reform since the 1930s.
November – Republicans win back the House in mid-term elections - a shift in power that is generally seen as a win for Wall Street. The Fed unveils a $600 billion bond-buying stimulus program called quantitative easing, and the Dow and Nasdaq touch 2-year highs.
December – President Obama signs the $858 billion tax cut deal into law. Stocks end the year on a high note with the S&P up 12%, the Dow up 10%, and the Nasdaq up 17%.
As we ride a wave of optimism into 2011, there are still a number of challenges to face. The Fed’s QE2 policy has many experts increasingly worried about inflation.
Home prices are falling again, leading to questions about a double-dip in the housing market recovery. And the economy continues to suffer from one of the longest job droughts in our nation's history, with the monthly unemployment rate lingering above 9% for 19 straight months.
Investors will also be paying attention to politics and global economics as the year begins. Congress will return this week with Republicans in control of the House, and while investors are hoping the new political landscape will deliver business-friendly policies, there's also the chance of political gridlock. In addition, Euro zone debt and China’s attempts to rein in inflation without derailing progress pose potential hurdles to overcome.
All things considered, the future looks bright for 2011. Bullish sentiment toward the stock market is spreading and investors are beginning to put more money into it than they are pulling out. There has been a recent decrease in unemployment claims which are currently at their lowest level since July 2008. And corporate earnings are strong, with a 32% growth rate estimated for S&P 500 companies in 2010’s fourth quarter.
The new year is beginning on a more positive note than many investors could have predicted given the challenges of 2010. And while we hope the economy and the stock market maintains its positive momentum, history teaches us that ups and downs are part of life. Whatever we face in the year ahead, rest assured that we will maintain a watchful eye on any factors that have the potential to affect you. May a bright and prosperous 2011 be yours!
ECONOMIC CALENDAR:
Tuesday – Motor Vehicle Sales, Redbook, Factory Orders
Wednesday – ISM Non-Mfg Index, EIA Petroleum Status
Thursday – Jobless Claims, Fed Balance Sheet, Money Supply
Friday – Employment Situation, Consumer Credit
Data as of 12/29/2010 1-Week 1-Year 5-Year 10-Year
Standard & Poor's 500 0.07 12.78 0.15 -0.47
Dow 0.03 11.02 1.60 0.73
NASDAQ -0.48 16.91 4.06 0.74
MSCI EAFE 0.68 4.90 -0.26 1.06
10-year Treasury Note (Yield Only) 3.35 3.81 4.38 5.11
Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. NA means not available.
QUOTE OF THE WEEK:
“For last year's words belong to last year's language, and next year's words await another voice, and to make an end is to make a beginning.” – T.S. Eliot
2010 was truly a year for the history books! The Standard & Poor’s 500 began January at 1115, and then crisscrossed that line 165 times to eventually end the ride with its finest December performance in 19 years. The Dow’s second-straight annual increase was equally dramatic, with almost half of its climb (5.2%) occurring in December.
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. Indexes cannot be invested into. Chart is for illustration purposes only.
More than a few factors influenced the roller coaster ride of last year. Here are a few of the highlights:
January – Stocks start out looking good at 15-month highs.
February – European debt concerns take center stage as investors fear Greece will default and trigger a landslide that continues into Portugal, Italy, Ireland and Spain. Anxiety about these areas tug at the markets all year.
April – In a series of left hooks, the SEC files charges against Goldman-Sachs related to improper sale of securities tied to subprime mortgages, the BP oil spill fiasco begins, and Greece requests a $53 billion bailout.
May - Wall Street experiences the infamous “Flash Crash” that sends the Dow plunging almost 1,000 points in just a matter of minutes.
July – Stocks sink to 2010 lows as June’s jobs report disappoints. President Obama signs the Frank-Dodd Wall Street Reform and Consumer Protection Act into law, enacting the most far-reaching financial reform since the 1930s.
November – Republicans win back the House in mid-term elections - a shift in power that is generally seen as a win for Wall Street. The Fed unveils a $600 billion bond-buying stimulus program called quantitative easing, and the Dow and Nasdaq touch 2-year highs.
December – President Obama signs the $858 billion tax cut deal into law. Stocks end the year on a high note with the S&P up 12%, the Dow up 10%, and the Nasdaq up 17%.
As we ride a wave of optimism into 2011, there are still a number of challenges to face. The Fed’s QE2 policy has many experts increasingly worried about inflation.
Home prices are falling again, leading to questions about a double-dip in the housing market recovery. And the economy continues to suffer from one of the longest job droughts in our nation's history, with the monthly unemployment rate lingering above 9% for 19 straight months.
Investors will also be paying attention to politics and global economics as the year begins. Congress will return this week with Republicans in control of the House, and while investors are hoping the new political landscape will deliver business-friendly policies, there's also the chance of political gridlock. In addition, Euro zone debt and China’s attempts to rein in inflation without derailing progress pose potential hurdles to overcome.
All things considered, the future looks bright for 2011. Bullish sentiment toward the stock market is spreading and investors are beginning to put more money into it than they are pulling out. There has been a recent decrease in unemployment claims which are currently at their lowest level since July 2008. And corporate earnings are strong, with a 32% growth rate estimated for S&P 500 companies in 2010’s fourth quarter.
The new year is beginning on a more positive note than many investors could have predicted given the challenges of 2010. And while we hope the economy and the stock market maintains its positive momentum, history teaches us that ups and downs are part of life. Whatever we face in the year ahead, rest assured that we will maintain a watchful eye on any factors that have the potential to affect you. May a bright and prosperous 2011 be yours!
ECONOMIC CALENDAR:
Tuesday – Motor Vehicle Sales, Redbook, Factory Orders
Wednesday – ISM Non-Mfg Index, EIA Petroleum Status
Thursday – Jobless Claims, Fed Balance Sheet, Money Supply
Friday – Employment Situation, Consumer Credit
Data as of 12/29/2010 1-Week 1-Year 5-Year 10-Year
Standard & Poor's 500 0.07 12.78 0.15 -0.47
Dow 0.03 11.02 1.60 0.73
NASDAQ -0.48 16.91 4.06 0.74
MSCI EAFE 0.68 4.90 -0.26 1.06
10-year Treasury Note (Yield Only) 3.35 3.81 4.38 5.11
Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. NA means not available.
QUOTE OF THE WEEK:
“For last year's words belong to last year's language, and next year's words await another voice, and to make an end is to make a beginning.” – T.S. Eliot
Senin, 27 Desember 2010
Are the markets setting up for a positive 2011?
Are the markets setting up for a positive 2011?
And, A note from us to you…
U.S. founding father Thomas Paine wrote: “The real man smiles in trouble, gathers strength from distress, and grows brave by reflection.” As we ponder the experiences of 2010, we cannot help but see timeless value in his words.
As one year draws to a close and the next unfolds before us, we are moved to reflect on the people and experiences that brought us to this point. Such reflection is essential because it helps us to be thankful for what we have, to grow in acuity, and to make prudent plans for the future.
From our perspective, providing you with sound financial guidance is about much more than numbers. It is about helping you ‘smile in times of trouble and gather strength in times of distress.’ More than that, it is about helping you ‘reflect’ on your personal experiences and aspirations so you can convert those into worthwhile, attainable goals for the future.
From the day we started working together, your goals became our goals; your trials, our trials. We consider it a privilege to serve you in this capacity, and we hope that you enjoy working with us as much as we enjoy working with you.
Thank you for all that you do. We look forward to continually growing our relationship in the years ahead!
THE MARKETS:
The final weeks of the year are traditionally light for the markets and 2010 is no exception so far. Thursday closed the week on a quiet note as the Dow rose a stingy 0.1%, and the three major indexes only moved about 1% higher for the week. Leading up to the Christmas holiday, it seems that both stocks and traders slipped quietly into vacation.
While gains have been modest in recent weeks, stocks are still on track to post double-digit increases for the year. And with good news surrounding consumer spending and consumer sentiment, the economy appears to have earned a break. The Commerce Department said spending rose 0.4% in November, slightly higher than economists had predicted, and experts calculate that the 2% cut in employee’s 2011 payroll taxes may fuel further spending in the year ahead. Interestingly, even if spending doesn't increase at all in December, it is on track to grow at an inflation-adjusted 4% annual rate in the fourth quarter, which would mark its fastest pace since 2006. "It looks like we've transitioned into a period of solid consumer spending," said Barclay’s Capital economist Dean Maki. "That makes it hard not to be optimistic about economic growth."
Obviously there are still a number of hurdles for the economy to overcome. Despite a recent increase in new home sales, we are still contending with a depressed housing market that could further damage household finances, prompting people to cut back spending. And at more than $91 a barrel, recent price hikes have earned oil a lump of coal in its stocking too. With oil prices at their highest levels in over two years and gasoline selling for an average $3.01 per gallon, this has the potential to squeeze a few pocketbooks.
Still, most of the economic news arrives just in time to offer fresh hope for the new year. Morgan Stanley economists boosted their fourth quarter GDP forecast to 4.5%, supported by the Commerce Department’s report that total orders for durable goods, excluding transportation, rose 2.4%, the best performance since last March. This increase in production bodes well for employment, where the recent drop in initial unemployment claims offers an additional glimmer of hope.
All in all, the year has ended more positively than it began. Stay tuned for our 2010 recap due in the week ahead. See you next year!
ECONOMIC CALENDAR:
Tuesday – Redbook, S&P Case-Shiller HPI, Consumer Confidence
Wednesday – EIA Petroleum Status Report
Thursday – Jobless Claims, Chicago PMI, Pending Home Sales Index, EIA Natural Gas, Farm Prices, Fed Balance Sheet, Money Supply
Friday – U.S. Holiday: New Year’s Day Observed
Data as of 12/23/2010 1-Week Y-T-D 1-Year 5-Year 10-Year
Standard & Poor's 500 1.12 12.7 12.2 -0.19 -0.38
Dow 0.65 10.9 10.6 1.27 0.88
NASDAQ 1.07 17.5 17.5 3.70 0.59
MSCI EAFE 0.65 4.20 4.61 -0.49 1.29
10-year Treasury Note (Yield Only) 3.48 N/A 3.75 4.38 5.00
Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. NA means not available.
HEADLINES:
China's central bank has raised its interest rate for the second time in just over two months as the nation fights to keep inflation in check.
The gap between the rich and the middle class is larger than it has ever been due to the bursting of the housing bubble. The richest 1% of U.S. households had a net worth 225 times greater than that of the average American household in 2009, according to analysis conducted by the Economic Policy Institute, a liberal think tank. That's up from the previous record of 190 times greater, which was set in 2004.
The number of food stamp recipients increased 16% over last year. This means that 14% of the population is now living on food stamps. That's about 43 million people, or about one out of every seven Americans.
Taxpayers who claim deductions for home-mortgage interest, gifts to charity and state and local taxes will have to wait until middle to late February to file their 2010 returns. The Internal Revenue Service attributed the late start of the filing season to changes in tax law for 2010 that were finished last week. The agency needs extra time to put processing systems in place, the IRS said Thursday.
QUOTE OF THE WEEK:
“The greater danger for most of us lies not in setting our aim too high and falling short; but in setting our aim too low, and achieving our mark.”– Michelangelo
And, A note from us to you…
U.S. founding father Thomas Paine wrote: “The real man smiles in trouble, gathers strength from distress, and grows brave by reflection.” As we ponder the experiences of 2010, we cannot help but see timeless value in his words.
As one year draws to a close and the next unfolds before us, we are moved to reflect on the people and experiences that brought us to this point. Such reflection is essential because it helps us to be thankful for what we have, to grow in acuity, and to make prudent plans for the future.
From our perspective, providing you with sound financial guidance is about much more than numbers. It is about helping you ‘smile in times of trouble and gather strength in times of distress.’ More than that, it is about helping you ‘reflect’ on your personal experiences and aspirations so you can convert those into worthwhile, attainable goals for the future.
From the day we started working together, your goals became our goals; your trials, our trials. We consider it a privilege to serve you in this capacity, and we hope that you enjoy working with us as much as we enjoy working with you.
Thank you for all that you do. We look forward to continually growing our relationship in the years ahead!
THE MARKETS:
The final weeks of the year are traditionally light for the markets and 2010 is no exception so far. Thursday closed the week on a quiet note as the Dow rose a stingy 0.1%, and the three major indexes only moved about 1% higher for the week. Leading up to the Christmas holiday, it seems that both stocks and traders slipped quietly into vacation.
While gains have been modest in recent weeks, stocks are still on track to post double-digit increases for the year. And with good news surrounding consumer spending and consumer sentiment, the economy appears to have earned a break. The Commerce Department said spending rose 0.4% in November, slightly higher than economists had predicted, and experts calculate that the 2% cut in employee’s 2011 payroll taxes may fuel further spending in the year ahead. Interestingly, even if spending doesn't increase at all in December, it is on track to grow at an inflation-adjusted 4% annual rate in the fourth quarter, which would mark its fastest pace since 2006. "It looks like we've transitioned into a period of solid consumer spending," said Barclay’s Capital economist Dean Maki. "That makes it hard not to be optimistic about economic growth."
Obviously there are still a number of hurdles for the economy to overcome. Despite a recent increase in new home sales, we are still contending with a depressed housing market that could further damage household finances, prompting people to cut back spending. And at more than $91 a barrel, recent price hikes have earned oil a lump of coal in its stocking too. With oil prices at their highest levels in over two years and gasoline selling for an average $3.01 per gallon, this has the potential to squeeze a few pocketbooks.
Still, most of the economic news arrives just in time to offer fresh hope for the new year. Morgan Stanley economists boosted their fourth quarter GDP forecast to 4.5%, supported by the Commerce Department’s report that total orders for durable goods, excluding transportation, rose 2.4%, the best performance since last March. This increase in production bodes well for employment, where the recent drop in initial unemployment claims offers an additional glimmer of hope.
All in all, the year has ended more positively than it began. Stay tuned for our 2010 recap due in the week ahead. See you next year!
ECONOMIC CALENDAR:
Tuesday – Redbook, S&P Case-Shiller HPI, Consumer Confidence
Wednesday – EIA Petroleum Status Report
Thursday – Jobless Claims, Chicago PMI, Pending Home Sales Index, EIA Natural Gas, Farm Prices, Fed Balance Sheet, Money Supply
Friday – U.S. Holiday: New Year’s Day Observed
Data as of 12/23/2010 1-Week Y-T-D 1-Year 5-Year 10-Year
Standard & Poor's 500 1.12 12.7 12.2 -0.19 -0.38
Dow 0.65 10.9 10.6 1.27 0.88
NASDAQ 1.07 17.5 17.5 3.70 0.59
MSCI EAFE 0.65 4.20 4.61 -0.49 1.29
10-year Treasury Note (Yield Only) 3.48 N/A 3.75 4.38 5.00
Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. NA means not available.
HEADLINES:
China's central bank has raised its interest rate for the second time in just over two months as the nation fights to keep inflation in check.
The gap between the rich and the middle class is larger than it has ever been due to the bursting of the housing bubble. The richest 1% of U.S. households had a net worth 225 times greater than that of the average American household in 2009, according to analysis conducted by the Economic Policy Institute, a liberal think tank. That's up from the previous record of 190 times greater, which was set in 2004.
The number of food stamp recipients increased 16% over last year. This means that 14% of the population is now living on food stamps. That's about 43 million people, or about one out of every seven Americans.
Taxpayers who claim deductions for home-mortgage interest, gifts to charity and state and local taxes will have to wait until middle to late February to file their 2010 returns. The Internal Revenue Service attributed the late start of the filing season to changes in tax law for 2010 that were finished last week. The agency needs extra time to put processing systems in place, the IRS said Thursday.
QUOTE OF THE WEEK:
“The greater danger for most of us lies not in setting our aim too high and falling short; but in setting our aim too low, and achieving our mark.”– Michelangelo
Senin, 20 Desember 2010
How will the extension of the Bush Tax Cuts benefit the economy next year? by Ken Mahoney
How will the extension of the Bush Tax Cuts benefit the economy next year? by Ken Mahoney
After months of speculation about the future of Bush era tax cuts, closure finally came late Thursday when the House of Representatives approved an $858 billion tax package to extend them through 2012. The approval of the plan has been marked by an optimistic attitude in the markets and positive speculation about the future of the economic recovery. While the S&P 500 only edged up one point this week, it has gained nearly 6% since Obama agreed to compromise with Republicans on the tax plan , and all major indexes either closed at or touched 52-week highs at some point during the last five trading days.
The economy is also showing signs of gaining ground, as a slew of upbeat statistics – from rising retail sales to falling unemployment claims – indicate. The economy grew at an annualized pace of 2.5% in the third quarter, and expanded growth is expected into next year. In an interview late Friday, Former Federal Reserve Chairman Alan Greenspan told Bloomberg: “The U.S. economy unquestionably has some momentum. The fourth quarter looks good. The growth rate could be 3.5 percent or more.” He later expressed this pick up in the economy should lead to increased hiring, and that the unemployment rate should drop next year. This would certainly be a welcome development!
It will be interesting to see what affect the new tax bill has on stock market performance in the shortened trading week ahead. Regardless of how things go, we hope you will relax and enjoy some quality time off with your family and friends.
ECONOMIC CALENDAR:
Tuesday – Redbook
Wednesday – GDP, Corporate Profits, Existing Home Sales, EIA Petroleum Status
Thursday – Durable Goods Orders, Personal Income and Outlays, Jobless Claims, Consumer Sentiment, New Home Sales, EIA Natural Gas
Friday – U.S. Holiday: Christmas Observed
Data as of 12/17/2010 1-Week Y-T-D 1-Year 5-Year 10-Year
Standard & Poor's 500 0.28 11.5 13.5 -0.37 -0.52
Dow 0.72 10.2 11.5 1.13 1.01
NASDAQ 0.21 16.5 21.2 3.47 -0.04
MSCI EAFE -0.10 2.58 4.69 -0.71 1.02
10-year Treasury Note (Yield Only) 3.30 N/A 3.49 4.45 5.18
Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. NA means not available.
HEADLINES:
The largest forfeiture settlement in U.S. history has recovered about half of Bernard Madoff’s stolen money. Barbara Picower returned $7.2 billion from her deceased husband’s estate. Jeffry Picower was a Florida businessman who had been the single-largest beneficiary of the fraud.
Bank of America said it will not process payments intended for WikiLeaks despite threats from the group that their next large documents release will be bank information. In related news, WikiLeaks founder, Julian Assange was released on bail this week from a jail in Britain, where he is fighting extradition to Sweden over alleged sexual offenses.
Americans spent $942 million online December 17, 61% more than they spent the same day last year, thanks to the more than 1,500 online merchants who participated in Free Shipping Day.
EU leaders outlined a plan for a new fund to fight future crises. Intended to take effect in 2013, the plan will replace the existing 750 billion euro ($998.8 billion) European Financial Stability Facility (EFSF). The meeting failed to create measures to limit borrowing costs which have forced rescues of Greece and Ireland and threaten other high-debt countries on the euro-zone periphery.
QUOTE OF THE WEEK:
“ Congress has voted to extend the Bush tax cuts. Is it me, or is George W. Bush getting more done now than when he was in office?
Jay Leno
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.
Rockland County
Chestnut Ridge NY
After months of speculation about the future of Bush era tax cuts, closure finally came late Thursday when the House of Representatives approved an $858 billion tax package to extend them through 2012. The approval of the plan has been marked by an optimistic attitude in the markets and positive speculation about the future of the economic recovery. While the S&P 500 only edged up one point this week, it has gained nearly 6% since Obama agreed to compromise with Republicans on the tax plan , and all major indexes either closed at or touched 52-week highs at some point during the last five trading days.
The economy is also showing signs of gaining ground, as a slew of upbeat statistics – from rising retail sales to falling unemployment claims – indicate. The economy grew at an annualized pace of 2.5% in the third quarter, and expanded growth is expected into next year. In an interview late Friday, Former Federal Reserve Chairman Alan Greenspan told Bloomberg: “The U.S. economy unquestionably has some momentum. The fourth quarter looks good. The growth rate could be 3.5 percent or more.” He later expressed this pick up in the economy should lead to increased hiring, and that the unemployment rate should drop next year. This would certainly be a welcome development!
It will be interesting to see what affect the new tax bill has on stock market performance in the shortened trading week ahead. Regardless of how things go, we hope you will relax and enjoy some quality time off with your family and friends.
ECONOMIC CALENDAR:
Tuesday – Redbook
Wednesday – GDP, Corporate Profits, Existing Home Sales, EIA Petroleum Status
Thursday – Durable Goods Orders, Personal Income and Outlays, Jobless Claims, Consumer Sentiment, New Home Sales, EIA Natural Gas
Friday – U.S. Holiday: Christmas Observed
Data as of 12/17/2010 1-Week Y-T-D 1-Year 5-Year 10-Year
Standard & Poor's 500 0.28 11.5 13.5 -0.37 -0.52
Dow 0.72 10.2 11.5 1.13 1.01
NASDAQ 0.21 16.5 21.2 3.47 -0.04
MSCI EAFE -0.10 2.58 4.69 -0.71 1.02
10-year Treasury Note (Yield Only) 3.30 N/A 3.49 4.45 5.18
Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. NA means not available.
HEADLINES:
The largest forfeiture settlement in U.S. history has recovered about half of Bernard Madoff’s stolen money. Barbara Picower returned $7.2 billion from her deceased husband’s estate. Jeffry Picower was a Florida businessman who had been the single-largest beneficiary of the fraud.
Bank of America said it will not process payments intended for WikiLeaks despite threats from the group that their next large documents release will be bank information. In related news, WikiLeaks founder, Julian Assange was released on bail this week from a jail in Britain, where he is fighting extradition to Sweden over alleged sexual offenses.
Americans spent $942 million online December 17, 61% more than they spent the same day last year, thanks to the more than 1,500 online merchants who participated in Free Shipping Day.
EU leaders outlined a plan for a new fund to fight future crises. Intended to take effect in 2013, the plan will replace the existing 750 billion euro ($998.8 billion) European Financial Stability Facility (EFSF). The meeting failed to create measures to limit borrowing costs which have forced rescues of Greece and Ireland and threaten other high-debt countries on the euro-zone periphery.
QUOTE OF THE WEEK:
“ Congress has voted to extend the Bush tax cuts. Is it me, or is George W. Bush getting more done now than when he was in office?
Jay Leno
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.
Rockland County
Chestnut Ridge NY
Senin, 13 Desember 2010
Can the Santa Claus Rally continue? (And year end tax moves) by Ken Mahoney
Can the Santa Claus Rally continue? (And year end tax moves) by Ken Mahoney
Many economic indicators have shown gradual improvement in recent months, and this seems to be reflected by a growing sense of optimism on Wall Street.
Despite an unusually flat stretch for the markets, stocks gained on Friday and the S&P 500 closed at its highest level since September 2008. Gains came after newly released government data showed a narrowing U.S. trade deficit, thus boosting hopefulness about further economic growth early in 2011. A separate report on consumer sentiment also came in better than expected, helping the Dow lock in a gain of 0.4%, the S&P 500 add 1.3%, and the Nasdaq rise 1.5% for the week.
If things continue as they are, the Dow and S&P 500 are on track to finish 2010 with 10% gains each, while the Nasdaq is up 16% year to date. Alec Young, equity strategist at Standard & Poor's, was quoted by CNN Money on Sunday and said, "The market has been doing pretty well. The recovery continues nice and steady in the U.S. and the market looks like it could go higher if that stays intact." And regarding the economy, John Canally, chief economist at LPL Financial was quoted by MarketWatch as saying, “Long term, the economy has turned the corner.” Hopefully these gentlemen are right, but of course, this paragraph did start with the word “if”. And when it comes to the stock market, few things are certain.
With the holiday shopping season well under way, much attention will be focused on retail sales figures due this Tuesday. Many analysts predict they will confirm a strong start to the post-Thanksgiving shopping season, and since consumer spending represents the single biggest component of U.S. economic growth, positive sales figures bode well for the overall health of the economy.
Also this week, eyes will be turned to Washington for signs a compromise has been reached regarding extending Bush-era tax cuts. The final outcome of the tax debate has been a major source of uncertainty for the markets, and putting the issue to bed is likely to have a stabilizing effect.
Each week, it may seem this commentary introduces new factors that affect the stock market, the economy, and our perception of how well things are going in the world. But regardless of what we report to you, rest assured that our goal is always the same – to educate you and to remain ever alert to the various challenges and opportunities that exist in the framework of working toward your goals. We hope you have a great week!
ECONOMIC CALENDAR:
Tuesday – Producer Price Index, Retail Sales, Business Inventories, FOMC Meeting Announcement
Wednesday – Consumer Price Index, Empire State Manufacturing Survey, Industrial Production
Thursday – Housing Starts, Jobless Claims, Philadelphia Fed Survey
Friday – Leading Indicators
Data as of 12/10/2010 1-Week Y-T-D 1-Year 5-Year 10-Year
Standard & Poor's 500 1.28 11.2 12.5 -0.30 -0.95
Dow 0.25 9.42 9.65 1.17 0.65
NASDAQ 1.78 16.2 20.4 3.37 -0.96
MSCI EAFE 0.38 2.68 3.81 -0.31 0.92
10-year Treasury Note (Yield Only) 3.02 N/A 3.48 4.54 5.34
Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. NA means not available.
HEADLINES:
Higher food prices continue to be the main driver of inflation in China, raising the likelihood of an imminent interest rate hike as the country tries to reel in its red-hot economy.
American homes are expected to be worth $1.7 trillion less in 2010 than they were worth last year, according to a report released Thursday by real estate website Zillow. This year's drop in home values is 63% bigger than the $1 trillion dip in 2009, and brings the total value lost since the housing market's peak in 2006 to a whopping $9 trillion.
Sadly, Mark Madoff, the oldest son of convicted swindler Bernard Madoff, committed suicide on Saturday, two years to the day after his father’s arrest.
A powerful, gusty storm dumped mounds of snow across the upper Midwest on Sunday, closing major highways in several states, canceling more than 1,600 flights in Chicago and collapsing the roof of the Minnesota Vikings' stadium.
Credit card offers are surging again after a three-year slowdown, as banks seek to revive a business that brought them huge profits before the financial crisis wrecked the credit scores of so many Americans. HSBC mailed more than 16 million card offers to this group in the third quarter of this year, Citigroup 14 million and Discover 10 million, all roughly tenfold increases over the same period last year, according to Synovate Mail Monitor, a market research firm. Capital One’s rate rose fiftyfold, to 22 million.
Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!.
Insert your broker/dealer disclosures here. i.e. Securities offered through “Your B/D Name Here,” Member FINRA/SIPC.
Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.
Many economic indicators have shown gradual improvement in recent months, and this seems to be reflected by a growing sense of optimism on Wall Street.
Despite an unusually flat stretch for the markets, stocks gained on Friday and the S&P 500 closed at its highest level since September 2008. Gains came after newly released government data showed a narrowing U.S. trade deficit, thus boosting hopefulness about further economic growth early in 2011. A separate report on consumer sentiment also came in better than expected, helping the Dow lock in a gain of 0.4%, the S&P 500 add 1.3%, and the Nasdaq rise 1.5% for the week.
If things continue as they are, the Dow and S&P 500 are on track to finish 2010 with 10% gains each, while the Nasdaq is up 16% year to date. Alec Young, equity strategist at Standard & Poor's, was quoted by CNN Money on Sunday and said, "The market has been doing pretty well. The recovery continues nice and steady in the U.S. and the market looks like it could go higher if that stays intact." And regarding the economy, John Canally, chief economist at LPL Financial was quoted by MarketWatch as saying, “Long term, the economy has turned the corner.” Hopefully these gentlemen are right, but of course, this paragraph did start with the word “if”. And when it comes to the stock market, few things are certain.
With the holiday shopping season well under way, much attention will be focused on retail sales figures due this Tuesday. Many analysts predict they will confirm a strong start to the post-Thanksgiving shopping season, and since consumer spending represents the single biggest component of U.S. economic growth, positive sales figures bode well for the overall health of the economy.
Also this week, eyes will be turned to Washington for signs a compromise has been reached regarding extending Bush-era tax cuts. The final outcome of the tax debate has been a major source of uncertainty for the markets, and putting the issue to bed is likely to have a stabilizing effect.
Each week, it may seem this commentary introduces new factors that affect the stock market, the economy, and our perception of how well things are going in the world. But regardless of what we report to you, rest assured that our goal is always the same – to educate you and to remain ever alert to the various challenges and opportunities that exist in the framework of working toward your goals. We hope you have a great week!
ECONOMIC CALENDAR:
Tuesday – Producer Price Index, Retail Sales, Business Inventories, FOMC Meeting Announcement
Wednesday – Consumer Price Index, Empire State Manufacturing Survey, Industrial Production
Thursday – Housing Starts, Jobless Claims, Philadelphia Fed Survey
Friday – Leading Indicators
Data as of 12/10/2010 1-Week Y-T-D 1-Year 5-Year 10-Year
Standard & Poor's 500 1.28 11.2 12.5 -0.30 -0.95
Dow 0.25 9.42 9.65 1.17 0.65
NASDAQ 1.78 16.2 20.4 3.37 -0.96
MSCI EAFE 0.38 2.68 3.81 -0.31 0.92
10-year Treasury Note (Yield Only) 3.02 N/A 3.48 4.54 5.34
Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. NA means not available.
HEADLINES:
Higher food prices continue to be the main driver of inflation in China, raising the likelihood of an imminent interest rate hike as the country tries to reel in its red-hot economy.
American homes are expected to be worth $1.7 trillion less in 2010 than they were worth last year, according to a report released Thursday by real estate website Zillow. This year's drop in home values is 63% bigger than the $1 trillion dip in 2009, and brings the total value lost since the housing market's peak in 2006 to a whopping $9 trillion.
Sadly, Mark Madoff, the oldest son of convicted swindler Bernard Madoff, committed suicide on Saturday, two years to the day after his father’s arrest.
A powerful, gusty storm dumped mounds of snow across the upper Midwest on Sunday, closing major highways in several states, canceling more than 1,600 flights in Chicago and collapsing the roof of the Minnesota Vikings' stadium.
Credit card offers are surging again after a three-year slowdown, as banks seek to revive a business that brought them huge profits before the financial crisis wrecked the credit scores of so many Americans. HSBC mailed more than 16 million card offers to this group in the third quarter of this year, Citigroup 14 million and Discover 10 million, all roughly tenfold increases over the same period last year, according to Synovate Mail Monitor, a market research firm. Capital One’s rate rose fiftyfold, to 22 million.
Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!.
Insert your broker/dealer disclosures here. i.e. Securities offered through “Your B/D Name Here,” Member FINRA/SIPC.
Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.
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